Bluebonnet Savings Bank v. Jones Country, Inc.

This case involves application of the federal common law D’Oench, Duhme doctrine. The court of appeals held that the parties memorialized their agreement in the bank’s files according to D’Oench, Duhme requirements. 911 S.W.2d 871. We disagree.

The D’Oench, Duhme doctrine protects the FDIC and its assignees, who receive a failed financial institution’s assets, from a borrower who has “lent himself to a scheme or arrangement” which is likely to mislead banking authorities. See D’Oench, Duhme & Co. v. FDIC, 315 U.S. 447, 458-61, 62 S.Ct. 676, 681, 86 L.Ed. 956 (1942); Bell & Murphy & Assoc.,…